Maruthi Udyog Company Analysis Report

COMPANY ANALYSIS REPORT
ON
COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 1

A STUDY ON
COMPANY ANALYSIS OF MARUTHI UDYOG

LTD
Submitted in partial fulfillment of the requirements for the award of the

degree of
MASTER OF BUSINESS ADMINISTRATION
BY
R.ANAND
MBA II SEMESTER
R.No:
08931E0027
Under the esteemed guidance of
S.A.HASEENA SULTANA
Assistant Professor KOTTAM GROUP OF INSTITUTIONS Department of

Management
SRI KOTTAM TULASI REDDY MEMORIAL ENGINEERING COLLEGE

OF

KONDAIR ITIKYALA MANDAL MAHABOOB NAGAR DISTRICT-
519125(AP)
DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION
SRI KOTTAM TULASI REDDY MEMORIAL
COLLEGE OF ENGINEERING
KONDAIR, ITIKYALA (MANDAL)
MAHABOOBNAGAR (DIST)-509125(A.P)
(Affiliated to J.N.T.U.H)
CERTIFICATE
This is to certify that the company analysis report entitled on MARUTHI

UDYOG LTD submitted by Mr.R.ANAND in partial fulfillment of the
requirements for the award of degree of MASTER OF BUSINESS
ADMINISTRATION in Jawaharlal Nehru Technological University Hyd is a
record of bonafide work carried out by her in this department.

Internal guide Head of the department
CONTENTS
SNO TITLE PAGE NO
1. INTRODUCTION
2. METHODOLOGY
(a) OBJECTIVES OF THE STUDY
(b) PROFILE OF THE COMPANY
3. VISSION& MISSION
4. ANALYSIS & INTERPRETATION OF FUNCTIONAL AREAS
(a) HRM
(b) MARKETING MANAGEMENT
(C) FINANCIAL MANAGEMENT
5. FINDINGS AND CONCLUSION
6. BIBLIOGRAPHY

OBJECTIVES OF THE STUDY
The objectives of the study are:
To narrate the profile of the company
Overview of Maruti and Suzuki
Building understanding of the car market in India and various

segments
Understand MULs product range and positioning in each segment
Understanding the basics in the automobile industry
Overview of each Maruti model and the MUL Advantage
Overview of the selling process and how to uncover needs of a

customer to do need based selling
Role of financing as a sales tool and the various financing options

available
Ensuring personal effectiveness
To study the HRM of the company
To enhance my knowledge about Recruitment and Selection.
To convert my theoretical knowledge into practical knowledge.
To prepare myself as a H.R. person who can easily identify the

training need through his experience which is very essential quality
of a H.R. Person & for the organization as well.
To enhance my knowledge about Training & Development

To analysis the Marketing Management of the Company
To study the financial position of the company

ACKNOWLEDGEMENT
The goal was fixed, moves were calculated and I moved with full of
enthusiasm, vigor and keen interest. There was a time when it proved to be on
up hill task, the goal seeming beyond my reach. But as work progressed my
determination and will power grew stronger and completion of this work further
confined my belief that,
WHERE THERE IS A WILL THERE IS A WAY.
Its a sheer pleasure for me to state with candidly that this entire project is a
heartily attempt to reach maximum accuracy. I therefore take this opportunity
top express my atmost gratitude and indebtness to all who have contributed in
some way
I am thankful to our guide, for her motivation, help and continuous

support, which made this company analysis happen. I am also indebted to her
for her invaluable suggestions, which made me to correct my faults and
improve myself.
I express my deep sense of gratitude and thanks to B.PARIMALADEVI

(Head of Department) for her consistent support and guidance. I am also
thankful to her for helping me find and overcome many problems faced during
the period.

I am very much obliged to SRI KOTTAM TULASI REDDY
MEMORIAL COLLEGE which has given me opportunity to carry out our
project work in its premises. I feel privileged to thank wholeheartedly our
Principal, NAYANATARA (MA.ME).for giving me this great opportunity.

DECLARATION
I here by declare mat this project entitled A STUDY OF

COMPANY ANALYSIS REPORT ON BRITANNIA is a bonafied work
carried out by me under the guidance of S.A.HASEENA SULTANA, Assistant
professor, Dept. of Management SKTRMC, Kondair. I also declare that report
is original and not submitted to any other university of Institution for the award
of any degree of Diploma.
Date:
Place:
Signature of the student.

OVERVIEW
Maruti Suzuki India Limited is a publicly listed automaker in India. It is a

leading four-wheeler automobile manufacturer in South Asia. Suzuki Motor
Corporation of Japan holds a majority stake in the company. It was the first
company in India to mass-produce and sell more than a million cars. It is
largely credited for having brought in an automobile revolution to India. It is
the market leader in India and on 17 September 2007, Maruti Udyog was
renamed Maruti Suzuki India Limited. The company headquarter is in Gurgaon,
Haryana (near Delhi).
Profile
Maruti Suzuki is one of India's leading automobile manufacturers and the

market leader in the car segment, both in terms of volume of vehicles sold and
revenue earned. Until recently, 18.28% of the company was owned by the
Indian government, and 54.2% by Suzuki of Japan. The Indian government held
an initial public offering of 25% of the company in June 2003. As of May 10,
2007, Govt. of India sold its complete share to Indian financial institutions.
With this, Govt. of India no longer has stake in Maruti Udyog.
Maruti Udyog Limited (MUL) was established in February 1981, though

the actual production commenced in 1983 with the Maruti 800, based on the
Suzuki Alto kei car which at the time was the only modern car available in
India, its' only competitors- the Hindustan Ambassador and Premier Padmini
were both around 25 years out of date at that point. Through 2004, Maruti has
produced over 5 Million vehicles. Marutis are sold in India and various several
other countries, depending upon export orders. Cars similar to Marutis (but not
manufactured by Maruti Udyog) are sold by Suzuki and manufactured in
Pakistan and other South Asian countries.
The company annually exports more than 50,000 cars and has an
extremely large domestic market in India selling over 730,000 cars annually.
Maruti 800, till 2004, was the India's largest selling compact car ever since it
was launched in 1983. More than a million units of this car have been sold

worldwide so far. Currently, Maruti Alto tops the sales charts and Maruti Swift
is the largest selling in A2 segment.
More than half the cars sold in India are Maruti cars. The company is a
subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of
Maruti. The rest is owned by the public and financial institutions. It is listed on
the Bombay Stock Exchange and National Stock Exchange in India.
Maruti Suzuki was born as a government company, with Suzuki as a

minor partner to make a people's car for middle class India. Over the years, the
product range has widened, ownership has changed hands and the customer has
evolved. What remains unchanged, then and now, is Marutis mission to
motorise India.
Partner for the Joint venture
Pressure started mounting on Indira and Sanjay Gandhi to share the

details of the progress on the Maruti Project. Since country's resources were
made available by mother to her son's pet project. A delegation of Indian
technocrats was assigned to hunt a collaborator for the project. Initial rounds of
discussion were held with the giants of the automobile industry in Japan
including Toyota, Nissan and Honda. Suzuki Motor Corporation was at that
time a small player in the four wheeler automobile sector and had major share
in the two wheeler segment. Suzuki's bid was considered negligible.
Industrial relations
For most of its history, Maruti Udyog had relatively few problems with
its labour force. Its emphasis of a Japanese work culture and the modern
manufacturing process, first instituted in Japan in the 1970s, was accepted by
the workforce of the company without any difficulty.

Authorized service stations
Maruti is one of the companies in India which has unparalleled service

network. To ensure the vehicles sold by them are serviced properly, Maruti has
2628 listed Authorized service stations and 30 Express Service Stations on 30
highways across India.
Service is a major revenue generator of the company. Most of the service

stations are managed on franchise basis, where Maruti trains the local staff.
Other automobile companies have not been able to match this benchmark set by
Maruti. The Express Service stations help many stranded vehicles on the
highways by sending across their repair man to the vehicle.
Maruti insurance
Launched in 2002 Maruti provides vehicle insurance to its customers with the
help of the National Insurance Company, Bajaj Allianz, New India Assurance
and Royal Sundaram. The service was set up the company with the inception of
two subsidiaries Maruti Insurance Distributors Services Pvt. Ltd and Maruti
Insurance Brokers Pvt. Limited
This service started as a benefit or value addition to customers and was

able to ramp up easily. By December 2005 they were able to sell more than two
million insurance policies since its inception.
Maruti Finance
To promote its bottom line growth, Maruti launched Maruti Finance in

January 2002. Prior to the start of this service Maruti had started two joint
ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE
Countrywide respectively to assist its client in securing loan.[15] Maruti tied up
with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard
Chartered Bank, and Sundaram to start this venture including its strategic
partners in car finance. Again the company entered into a strategic partnership
with SBI in March 2003[16] Since March 2003, Maruti has sold over 12,000
vehicles through SBI-Maruti Finance. SBI-Maruti Finance is currently available
in 166 cities across India

Maruti Driving School
As part of its corporate social responsibility Maruti Udyog launched the

Maruti Driving School in Delhi. Later the services were extended to other cities
of India as well. These schools are modelled on international standards, where
learners go through classroom and practical sessions. Many international
practices like road behaviour and attitudes are also taught in these schools.
Before driving actual vehicles participants are trained on simulators.
Exports
Maruti Suzuki has helped India emerge as the fourth largest exporter of
automobiles in Asia. Shown here is Maruti Gypsy in Malta.
Maruti Exports Limited is the subsidiary of Maruti Udyog Limited with

its major focus on exports and it does not operate in the domestic Indian market.
The first commercial consignment of 480 cars were sent to Hungary. By
sending a consignment of 571 cars to the same country Maruti crossed the
benchmark of 300,000 cars. Since its inception export was one of the aspects
government was keen to encourage. Every political party expected Maruti to
earn foreign currency.
OBJECTIVES OF THE STUDY
The objectives of the study are:

To narrate the profile of the company
Overview of Maruti and Suzuki
Building understanding of the car market in India and various

segments
To study the HRM of the company
To enhance my knowledge about Recruitment and Selection.
To convert my theoretical knowledge into practical knowledge.
To prepare myself as a H.R. person who can easily identify the

training need through his experience which is very essential quality
of a H.R. Person & for the organization as well.
To enhance my knowledge about Training & Development
To analysis the Marketing Management of the Company
Overview of the selling process and how to uncover needs of a

customer to do need based selling
To study the financial position of the company

available
Ensuring Company effectiveness in implementing accounting
standards
Analyzing companies financial statements in ratios

PROFILE (Snap Shot)
Year of
February 1981
Establishment
"The Leader in The Indian Automobile Industry,
Vision Creating Customer Delight and Shareholder's Wealth;
Type A pride
Public of India."
(BSE MARUTI, NSE MARUTI)
Industry Automotive - Four Wheelers
Listings & its codes
[1]
Founded 1981
BSE - Code: 532500
NSE - Code: MARUTI
Bloomberg: MUL@IN
Reuters: Haryana,
Headquarters Gurgaon, MRTI.BOIndia
Joint Venture
With Suzuki Motor Company, now Suzuki Motor
Key people Mr. Shinzo Nakanishi,
Corporation, of Japan Managing
in OctoberDirector
1982. and CEO
Registered &
Corporate Office
Industry Automotive
11th Floor, Jeevan Prakash
25, Kasturba Gandhi Marg
New Delhi - 110001, India
Tel.: +(91)-(11)-23316831 (10 lines)
Products Cars
Fax: +(91)-(11)-23318754, 23713575
Telex: 031-65029 MUL IN
Revenue US$3.5 billion (2009)

Works
Palam Gurgaon Road
Gurgaon -122015
Employees 6,903 [2]
Haryana, India
Tel.: +(91)-(124)-2340341-5, 2341341-5
Website Parent Suzuki

www.marutiudyog.com

Website MarutiSuzuki.com
MILE STONES

1981 Maruti Udyog Ltd. was incorporated.
1982 Steped into a JV with SMC of Japan.
1983 Maruti 800, a 796 cc hatchback, India's first affordable car
was produced.
1984 Installed capacity reached 40,000 units. Omni, a 796 cc
MUV was in production.
1985 Launch of Maruti Gypsy (970cc, 4WD off-road vehicle).
1986 Produced 100,000 vehicles (cumulative production).
1987 Exported first lot of 500 cars to Hungary.
1988 Installed capacity increased to 100,000 units.
1992 SMC increases its stake to 50 per cent.
1994 Produced the 1 millionth vehicle since the commencement
of production.
1995 Second plant launched, the installed capacity reached
200,000 units.
1996 Launch of 24-hour emergency on-road vehicle service.
1997 Produced the 2 millionth vehicle since the commencement
of production.
1998 Launch of website as part of CRM initiatives.
1999 Launch of Maruti - Suzuki innovative traffic beat in Delhi
and Chennai as social initiatives.
2000 IDTR (Institute of Driving Training and Research)
launched jointly with Delhi government to promote safe
driving habits.
2001 Launch of customer information centers in Hyderabad,
Bangalore, and Chennai.
2002 SMC increases its stake to 54.2 per cent.
Launch of Maruti Finance with 10 finance companies in
Mumbai.
Start of Maruti True value in Mumbai.

2003 Production of 4 millionth vehicle.
Listed on BSE and NSE after a public issue oversubscribed

10 times.
2004 Maruti closed the financial year 2003-04 with an annual
sale of 472122 units, the highest ever since the company
began operations 20 years ago.
COMPANY ANALYSIS REPORT (Maruthi Udyog Limited)
2005 18
The fiftieth lakh car rolls out in April, 2005.
2007 Swift diesel launched.

2008 th
JOURNEY OF MARUTHI SUZUKI
Feb 1981 - The result, Maruti Suzuki India Limited (MSIL) was born in
February 1981. Maruti Suzuki started as a government company, with Suzuki as
a minor partner, to make a people's car for middle class India. Over the years,
the company's product range has widened and ownership has changed hands. A
subsidiary of Suzuki Motor Corporation (SMC) of Japan, the Maruti Suzuki
India Limited headquartered in Delhi, running with 3 vehicle assembly plants at
Gurgaon and 1 vehicle assembly.
1983 Dec 14, 1983 - Maruti completes 25 years Maruti Suzuki recently
completed 25 years. On December 14, 1983, the first Maruti 800,
India's iconic car, rolled off the assembly line at the company's
Gurgaon plant. Since then, Maruti Suzuki has produced and sold
around
2000 Nov 21, 2000 - Also, Suzuki is registered under trademark laws in
various countries. They hybrid trademark 'Maruti Suzuki' has been
used on products of the joint venture company in India. The Indore-
based World Information Pages had claimed that the word Maruti is
name of an Indian god.
2002 Jan 25, 2002 - The rights issue will thus witness Suzuki becoming
the largest shareholder in Maruti. In return for this, the Government
will get a renunciation premium for forgoing its portion of the rights
in favour of Suzuki as well as control premium for giving up
majority control in Maruti to the .

2003 May 31, 2003 - Osamu Suzuki, chairman & CEO, Suzuki Motor
Corporation, said: "Maruti is controlled by Suzuki and will continue
to be managed by Suzuki in India." Responding to queries on the
future control of Maruti, Suzuki said: "General Motors has a 20 per
cent stake in Suzuki, Japan.
2004 May 2004 - Maruti Suzuki's all-conquering hatchback Swift has just
added another feather to its crown by becoming the fastest car
model to reach the 3-lakh milestone. Launched in May 2005, the
sporty car achieved this feat in only three years and eight months.
On the occasion .
2005 June 26, 2005 - Maruti Suzuki's all-conquering hatchback Swift has
just added another feather to its crown by becoming the fastest car
model to reach the 3-lakh milestone. Launched in May 2005, the
sporty car achieved this feat in only three years and eight months.
On the occasion
2006 Nov 13, 2006 - The former India bureaucrat is managing director of
Maruti Suzuki, the Indian subsidiary of Suzuki Motor, the Japanese
automaker's biggest operation outside of ... Such are the current
competitive dynamics facing Maruti Suzuki in one of the fastest-
growing auto markets in the world
2007 Dec 11, 2007 - India's rapidly expanding automobile market is key
for Suzuki, its chairman has often said. Maruti Suzuki, in which
Suzuki owns a 54.2% stake, is expanding its lineup and dealer
network here. Suzuki also faces competition from global
automakers like Toyota (nyse: TM - news - people ).
2008 Apr 25, 2008 - `The best year': Mr S. Nakanishi, Managing Director
and CEO, Maruti Suzuki India Ltd, addressing a press conference in
the Capital on ... Announcing the results, Mr Shinzo Nakanishi, the
company's Managing Director, said, "The year 2007-08 was the best
year in the history of Maruti."

2009 Jul 1, 2009 - MUMBAI, July 1 (Reuters) - Maruti Suzuki, India's
top car maker, said its car sales rose 22.6 percent in June, up for the
six month in a row, 'This month's export numbers are the highest
ever monthly export volume in the company's history,' Maruti said
in a statement on Wednesday. ...
VISION & VALUES
VISION VALUES
The leader in the Indian Automobile CUSTOMER OBSESSION

Industry, creating customer delight FAST, FLEXIBLE & FAST
and shareholders wealth A pride of MOVER
India. INNOVATION AND CREATIVITY
NETWORKING AND
PARTNERSHIP
OPENNESS AND LEARNING
BOARD OF DIRECTORS
Name Designation Name Designation
Chairman / Chair Managing Director

R C Bhargava Shinzo Nakanishi
Person & CEO
Shuji Oishi Director Tsuneo Ohashi Director
Keilchi Asai Director Osamu Suzuki Director
Kenichi
Director Amal Ganguli Director
Ayukawa
Manvinder Singh
Pallavi Shroff Director Director
Banga
Davinder Singh
Director Hirofumi Nagao Director
Brar
HUMAN RESOURCE MANAGEMENT:

Personnel management is that part of management process which is
primarily concerned with the human constituents of an organization.
Objectives:
To help the organization reach its goals.
To employ the skills and abilities of the workforce efficiently.
To provide the organization with well-trained and well-motivated

employees.
To increase to the fullest the employees job satisfaction and self-

actualization.
To develop and maintain a quality of work life.
To communicate HR policies to all employees.
To be Ethically and Socially Responsive to the needs of society.
Importance:
Social significance: proper management of personnels, enhances their

dignity by satisfying their social needs.
Professional significance: By providing healthy working environment, it

promotes team work in the employees.
Significance for Individual Enterprise: It can help the organization in

accomplishing.

HR VISION :
Lead and Facilitate continuous Change towards organisational Excellence

; create a learning And vibrant organisation with High sense of pride amongst
its Members
CULTURE BUILDING INITIATIVES
SINCE INCEPTION:
Japanese Spirit Management philosophy of Team

C ommon uniform
O pen office
Common Canteen
FOCUS OF EFFECTIVE MANAGENENT PROCESS
Top Driven HR MD is also Director HR

HRs role of a facilitator
Line managers as HR Managers
Year of the Customer
HR INTERNAL CUSTOMER FOCUS
Focus on Internal & External Customer

HR INITIATIVES
Prepare MUL Strategic Business Plan-2000-2003; To achieve the Vision

& Goal
Improve the performance Appraisal system - its process, skill & usage
Introduce a Potential Appraisal System
Improvements in internal & external Training & its effective utilisation.
Training need identification.
Systematic career planning ; Job Rotation ; Empowerment; Job
enrichment
Periodic communication meeting at various level; Roll out of Vision
Raise cost consciousness for cost control and reduction
Exposure on Brand Strategy to all non- marketing staff
Retention of Talent.
INDUCTION SUCCESSION:
Transparent Recruitment & Selection process

Recruitment on an All India Basis no sectoral or
Region specific
Recruitment of Best available Talent in the Country

ENGINEERS CAMPUS - IITS/RECS/RORKEE/HBTI
ALL-INDIA TEST
MBAs IIMs/XLRI
CAs - Rank Holders
Technicians - ITIs diploma holders after All
India Exam & Apprenticeship In MUL
Lateral Entry for Experienced Professionals
SUCCESSION PLANNING
potential & performance

vacancy based
Open Office Easy accessibility, Speedy

Communication and decision making
Morning Meetings
Morning Exercises
Management Committee Meetings every
Tuesday
Single unaffiliated Union
Excellent Industrial Relations scenario no
loss of mandays due to strike/lockout etc. in
past 5 yrs.
Maruti Udyog Sahyog Samiti a forum for
Non-Unionised Staff
Delayered Organisation Structure
Workers(Techn. / Asst.), Supervisors,
Executives, Managers

INDUCTION PROGRAMME
Objective:
The objective of this program is to facilitate smooth induction of the new

DSEs into their place of work i.e. Maruti dealerships. This program attempts to
orient the new DSEs on a few important parameters, which are listed below:
Overview of Maruti and Suzuki:
Building understanding of the car market in India and various segments
Overview of the selling process and how to uncover needs of a customer

to do need based selling

available
Ensuring personal effectiveness
Understand the attributes of a good DSE

MEANING OF RECRUITMENT
It is the process of searching the potential candidate and offers him or her
the job
It is positive in nature in the Indian context. Process of identifying and

hiring best-qualified candidate.
RECRUITMENT PROCESS OF MARUTI UDYOG LTD:
The recruiting procedure at a Maruti dealership is as follows:
FOR A PARTICULAR DEALERSHIP
The dealership should release an advertisement.

Depending on availability of infrastructure
Interview of shortlisted/ qualified personnel

MEANING OF SELECTION:
It is the process of searching the potential candidate. It is negative in

nature in the Indian context. But it is positive in the US context.
Steps in Selection Process of Maruti udyog ltd:
Selection process consists of a series of steps, at each stage, facts may

come light which may lead to the rejection of the applicant. It is a series of
successive hurdles or barriers which an applicant must cross. These hurdles
or screens are designed to eliminate an unqualified candidate at any
point in the selection process There is no standards selection procedure
to be used in all organizations or for all jobs. The complexity of

selection procedures increases with the level and responsibility of the
position to be filled.
Preliminary Interview (screening applications)

Application Form
Selection Test
Employment Interview
Medical Examination
Reference Checks
Final Approval
Employment.
Induction.
Follow up (Evaluation)
IMPORTANCE OF TRAINING
Training and Development helps in optimizing the utilization of human

resource that further helps the employee to achieve the organizational goals as
well as their individual goals.
Annual Training Plan - All Levels
Training customised to meet Organisational Objectives
Topics selected based on Vision, Values & Departmental

Feedback of Company-wide Managers
Competency Mapping to identify Individual Training Needs
Technical Training on latest Technologies abroad at SMC, Japan
STRONG FOCUS ON TRAINING INITIATIVES:
Build a Learning Organisation
Continuous Value Additions to Professional Skills
Customised Training
Training to the personnel of Business Partners
OVERSEAS TRAINING :
Training held in co-ordination with SMC, Japan and
AOTS (Assoc. for Overseas Tech. Scholarship)
(covered 1600 employees under the various schemes)
6 months SMC Training for Technicians

OJT in SMC, Japan (2 batches/yr of 50 each)
9 months Javada Training for Press, Tool & Die
Specialists - Design & Maintenance
AOTS Managerial Training (4-10weeks) for Manager &above -

Managerial Best Practices
AOTS Technical Training (3.5 to 6 months) for
Supervisors & above - Technological Knowhow
R & D Training (2 yrs.) - Research on new Technologies
APPRAISAL REWARD
Appraisal:
A systematic, periodic and so far as humanly possible, an impartial rating

of an employees excellence in matters pertaining to his present job and to his
potentialities for a better job.
New Appraisal System based on KRAs &Targets
Review of Targets at regular Intervals
People Development an important KRA
REWARD
Promotions based on Performance
Productivity & Profit-linked Incentive Schemes
Training including Long-term SMC Japan Trg.
Highest paid workforce in the Industry, if not the Country
LEADERSHIP
Vision, Value & Team Building Workshops for Top Management

CFT (Cross Functional Teams) of Managers for Major Thrust Areas
Managers sent to Joint Ventures to upgrade their practices to MUL

standards
CAREER DESIGN
It is defined as the process of deciding on the content of a job in terms of

its duties and responsibilities on the methods to be used in carrying out the job,
in terms of techniques, systems and procedures and on the relationships that
should exist between the job holder and his superiors, subordinates and
colleagues
Performance & Potential based Appraisals
Fast Track Option for High-performers
Promotions after Managers Vacancy based
Interviews for promotions above Managers
SELECTION OF SUPERVISORS:
Performance / Attendance / Discipline record
Written Test & Interview
Job Rotation - including Inter-functional
OUTSOURCING HR:
Part of our Long-term Strategic Plan
Currently Trainers hired from outside

RETENTION EMPLOYEE WELFARE :
Employee retention is a process in which the employees are encouraged

to remain with the organization for the maximum period of time or until the
completion of the project. Employee retention is beneficial for the organization
as well as the employee.
EMPLOYEE WELFARE:
Residential Colonies for Employees Chakkarpur & Bhondsi
Hospitalisation Reimbursement on actuals without Ceiling
Vehicle Loans
Household Equipment Loans
House Building Advance
Annual Advance
MUL PF Trust for better Mgt., Service & speedy redress
Proposed MUL Pension Scheme
Learning Opportunity - Benchmark in Auto Technology
Professional Value addition through Training
Opportunity for foreign training at SMC, Japan
Job Rotation & Job enrichment

EMPLOYEE ENGAGEMENT -ESOPs
Maruti Udyog Ltd. Employees Mutual Benefit Fund Scheme Managed by

a 10-member Trust Fixed Equity of 0.26% Lock-in period of 3 years
Transferable Internally
SUGGESTION SCHEME QUALITY CIRCLES:
For better quality and productivity
Through involvement of all employees and teamwork
During the year 1999-2000 :-
Suggestions Implemented - 52,054
Cost Saving (in crores) - Rs. 131.69 Crores
Number of QC Groups - 510
QC Meetings held - 7189
Target for SS & QC for 2000-01:
Suggestions Implemented - Prod. & VI - 1implmented/employee/month

Other areas - 8.4 implemented/employee/month
Cost Saving Rs. 165 crores (25%)increase for the Company
QC Meeting - 13 meetings/QC Gp./ Year
Target - 34 marks / suggestion
Company-wide QC Groups (8-15 members per group)
Monthly QC Meetings on the First Wednesday each Month
Company-wide QC Competitions - Best Team sent to SMC
MDs lunch with Best QC Team & Best Suggestion Winner
SUGGESTIONS : MONETARY REWARD:
Criteria - Idea
Efforts
Result : Cost reduction / Q Improvement / Productivity
Improvement
FUTURE CHALLENGES
Realigning organisation culture based on new vision & values
Objective performance management & development system
Transparent job rotation & job enrichment
Performance linked reward and recognition system
Career planning & promotion policy

Revised recruitment policy
Competency mapping
Strong fucus on training initiatives
Build a learnng organisation
Continuous value addition to professional skill
Customised training
Training to the personnel of business partners
Internal Communication
Union alignment
Employee involvment & participation
CODE OF BUSINESS CONDUCT AND ETHICS:
As a responsible corporate citizen, Maruti Suzuki India Limited (Maruti

or the Company) has alwaysbelieved in following highest standards of
Corporate Governance. Being a listed Company, every act of the Company, its
Board Members and its employees is the focus of public attention and
accordingly, there is a need to reinforce Marutis commitment towards
maintaining highest standards of Corporate Governance. This Code of Business
Conduct and Ethics (Code of Conduct or Code) helps ensure compliance
with our standards of business conduct & ethics and also with regulatory
requirements. All Senior Management Personnel are expected to read and
understand this Code of Business Conduct and Ethics,
Uphold these standards in day-to-day activities and also comply with all
applicable standards, policies and procedures of the company. This policy
should be read in conjunction with applicable regulations & existing policies &
procedures of the Company. You can also contact the Secretarial & Legal
Department if you have any questions or clarifications.
APPLICABILITY :
This Code of Conduct is applicable to all Senior Management Personnel

which would include the directors of the Company, the top management
personnel (i.e., executive directors & advisors at executive director level) & all
functional heads (including management personnel with direct functional
reporting to directors & top management personnel). All Senior Management
Personnel are expected to comply with the letter and spirit of this Code. The
Senior Management Personnel should continue to comply with otherapplicable
laws & regulations and the relevant policies, rules and procedures of the
Company.The Code comes into immediate effect.
INTERPRETATION OF THE CODE :
In this Code the term Relative shall have the same meaning as defined
in Section 6 of the Companies Act, 1956. In this Code, words importing the
masculine shall include feminine and words importing singular shall include the
plural or vice versa. Any question or interpretation under this Code of
BusinessConduct and Ethics will be considered and dealt with by the Board or
any person authorized by the Board on their behalf.
COMPLIANCE WITH APPLICABLE LAWS & REGULATIONS :

Senior Management Personnel must comply and where applicable,
oversee compliance by employees with all the laws, rules and regulations
applicable to the Company and its employees. Each Senior Management
Personnel must acquire appropriate knowledge of the requirements relating to
his duties sufficient to enable him to recognize potential non compliance issues
and to know when to seek advice from the Legal Department on specific
Company policies and procedures. No payment or transaction should be made
or undertaken, by a Senior Management Personnel or authorized or instructed to
be made or undertaken by any other person or the Company if the consequence
of that transaction or payment would be the violation of any law in force.
HONESTY, INTEGRITY & ETHICAL CONDUCT :
Senior Management Personnel shall act in accordance with the highest

standards of integrity, honesty, fairness and ethical conduct while working for
the Company as well when representing the Company. Honest conduct means
conduct that is free from fraud or deception. Integrity & ethical conduct
includes ethical handling of actual or apparent conflicts of interest between
personal and professional relationships.

MARKETING MANAGEMENT:
Marketing is the creation and delivery of standard of living to the society.
Objectives:
The various objectives of marketing include the following :.
Intelligent and capable application of modern marketing policies.
To develop the marketing field.
To develop guiding policies and their implementation for a good

result.
To suggest solution by studying the problems relating to

marketing.
To find source for further information concerning the market

Problems.
To revive existing marketing function, if shortcoming are found.
To take appropriate action in the course of actions.
Importance :
Importance of marketing to the society.
Importance of marketing to the firm.
Importance of marketing in Developed Economy.
Importance of marketing in underdeveloped or Developing

Economy.

Importance of marketing in a Sellers or Buyers market.
PRODUCTS OF MARUTHI SUZUKI :
Starting Price
Available Car Models
(Ex-showroom, Mumbai)
Maruti Suzuki 800 Rs. 1,97,214
Maruti Suzuki Omni Rs. 2,03,565
Maruti Suzuki Alto Rs. 2,36,843
Maruti Suzuki Zen Estilo Rs. 3,13,085

Maruti Suzuki Wagon R
Rs. 3,22,157
Maruti Suzuki Wagon R

Rs. 3,39,532
Duo

Maruti Suzuki A-Star

Rs. 3,58,942
Maruti Suzuki Versa Rs. 3,86,953
Maruti Suzuki Ritz

Rs. 4,05,872
Maruti Suzuki Swift

Rs. 4,22,859
Maruti Suzuki Swift Dzire

Rs. 4,82,300

Maruti Suzuki Gypsy
Rs. 5,23,325
Maruti Suzuki SX4 Rs. 6,81,091
Maruti Suzuki Grand Vitara Rs. 16,92,000
4Ps OF MARUTI SUZUKI SWIFT:

PRODUCT:
The all-new Maruti Suzuki Swift is fully loaded with a range of exciting
new features. It's a perfect complement to your evolved tastes and lifestyle. And
the best way to take your driving pleasure to a brand-new high.European
Styling. Japanese Engineering. Dream-Like Handling.
The new Swift is a generation different from Suzuki design. Styled with a
clear sense of muscularity, its one-and-a-half box, aggressive form makes for a
look of stability, a sense that it is packed with energy and ready to deliver a
dynamic drive.Its solid look is complemented by an equally rooted road
presence and class-defining ride quality. New chassis systems allow for the
front suspension lower arms, steering, gearbox and rear engine mounting to be
attached to a suspension frame. You get lower road noise, and a greater feeling
of stability as you sail over our roads with feather-touch ease.
There are three variants of Maruti Suzuki Swift :
Swift LXi
Swift VXi
Swift ZXi
3 assist grips, 3 spoke urethane steering wheel, antenna, cabin light (3

position), console box (lower), cup holders (front 2, rear1), front door trim
pockets, green tinted glass window, halogen headlamps, headlamp leveling
device, heater and manual Air conditioning, OVRM (internally adjusted), rear
fog lamps, wind screen wiper 2 speed plus 1 speed intermittent, tailgate opener
key type, trip meter (digital display), sun visors (both sides), brake assist , child
lock (rear door), high mounted stop lamp, power steering, rear seat belts etc. are
the features available in this model.
Swift VXi:
Apart from the features found in other model, striking features of this
model are black colored A & B pillars, 12v accessory socket in center console,
day and night rear view mirror, door ajar warming lamp, driver's seatbelt
warning lamp, tachometer, driver's seat belt warning lamp, vanity mirrors (sun
visor co-driver side), rear seat head restraints, fabric accented door trims,
central door locking (4 door), front and rear electronic windows, front fog
lamps, light off/ key reminder, manual air-conditioning, key not removed
warning buzzer, etc.
Swift ZXi
Special features that have made this model more market friendly are rear
window demister, rear parcel shelf, rear window wiper, room lamp and luggage
room, keyless entry,dual front airbags, colored outside door mirror cowls,
colored outside door handles, 12v accessory socket in luggage room, driver seat
height adjuster, central door locking (5 doors), seat belts 3-point ELR with
shoulder adjusters, seat belts front 3-point ELR with pretensioning,tailgate
opener electromagnetic type etc.
PRICE:
Maruti is expected to take Hyundai heads on with the pricing of their

upcoming Maruti Suzuki Swift car. After launching cars for the masses since so
many years, Indias largest automobile manufacturer is now targeting the
premium segment with their latest model from the Suzukis stable. The analysts
predict the pricing of this premiumhatchback to start from Rs. 4 lakh.This price
range would practically rip apart Hyundais offering in Getz, which is priced at
a much higher tag of Rs. 4.5 lakh. Both the companies are known for their value
based offerings and Maruti with their extensive service network and brand
reputation for making reliable cars should get the customers nod over their
competition.The official pricing however is still not out. However, the company
is said to be studying the prospects of launching the base model at the 4-lakh
price tag. There is another advantage in doing so considering in the capital city
of Delhi NCR road tax on the sub 4 lakh priced cars is comparatively lower at
2%. Cars at a price higher than 4 lakh have to pay a 4% road tax.Delhi NCR is
one of the major targeted markets and it might get the benefit of this policy. And
if they indeed do take the chance of pricing Suzuki Swift at a considerable
lower price than Hyundai Getz, they would quite likely force the competition to
rethink their strategy.
PROMOTION:
When Maruti Udyog launched the Swift in May last year, the automotive
industry was agog with expectation that the car had the makings of a real
winner. Three versions were launched with the base variant carrying a retail tag
of Rs 3.85 lakh, ex-showroom, New Delhi, and this aggressive pricing only
reinforced this feeling. A year later, the company says the Swift is now the
most-sold car in the first year of any car in the history of the Indian automobile
industry, having totted up sales of 61,200 units.

This is higher than what Maruti had initially planned to sell. The car
recorded an estimated 4,000 bookings at the time of its launch, and the initial
output of 200 units a day on a two-shift basis, wasnt enough to cope with
demand.
In October, the company increased capacity for the Swift which helped
cut down on the waiting time from an estimated three months.
PLACE :
The car manufacturing company, called Maruti Suzuki Automobiles India

Limited, is a joint venture between Maruti Udyog and Suzuki
Motor Corporation holding a 70 per cent and 30 per cent stake

respectively. The Rs1,524.2 crore plant has a capacity to roll out 1 lakh cars per
year with a capacity to scale up to 2.5 lakh units per annum. The car
manufacturing plant will begin commercial production by the end of 2006.The
engine and the transmission plant has owned by Suzuki Powertrain India
Limited in which Suzuki Motor Corporation would hold 51 per cent stake and
Maruti Udyog holding the balance. The ultimate total plant capacity is three
lakh diesel engines. However, the initial production is 1 lakh diesel engines,
20,000 petrol engines and 1.4 lakh transmission assemblies.
SALES PERFORMANCE
:

INTERPRETATION:
The sales volumes of Maruthi Suzuki had increased randomly from

2001-2008, in 2001 it was 352,415 crores it increased to 764,842 in the year
2008.this report says that Maruthi Suzuki has out standng its performance in
producing and marketing its products.
MARKET SHARE :

INTERPRETATION:
Market Share:
Currently Suzuki holds 54.2% stake of Marti, the balance being held by
various QIBs, PCBs
Public. On BSE, Marti has the highest market capitalization in the auto
sector.
We are the largest car company in the country. So far, we have produced
more than 6.6 million cars.
We are Suzuki's largest manufacturing facility, outside Japan offering 11
models
in over 150 variants.
The turnover last year was USD 3.37 Bn employing more than 6700
employees.
The high localization of parts within India is one of our distinct strengths.
Where the company has 3 plants in Gurgaon facility, 4th plant was added
with
the capacity of 100000 Cars
Hundred thousand at Manesar in 2006-07.
The market share of Maruthi Suzuki had decreased gradually from the
year 2001-2008 due to its rigid competitors HYUNDAI and TATA motors etc.

BRAND HIERARCHY OF THE COMPANY:
The Product Line:
The Indian passenger car market was divided into various segments and
sub-segments on the basis of price, size (i.e. length of the model and its weight)
and other factors (including engine capacity). MUL had a presence in all the
segments and sub-segments.
COMPETITORS :
Major Competitors:

Since 1985, Maruti Udyog Limited (MUL) has been the market leader in
the passenger car industry in India. Its flagship product - M800 had the
distinction of being the largest selling car model in India since its launch in
December 1983.Positioned as people's car, M800 ruled the Indian passenger car
market and remained unchallenged ever since it occupied the top slot, five
months after its introduction In March 2003, MUL sold 20,687 units of M800,
the highest ever sales by any single model in a month. It was also the highest
sales since M800 debuted, surpassing its previous monthly high of 18,735 units
in August 1999
For the first few months of 2004, M800 performed well, selling 15,301
units in January, 13,518 units in February and 15,540 in March. But gradually
Alto, another MUL product, began eating into M800's share. Alto reported In
April, its sales increased to 9,350 units and in May 2004, Alto took over M800's
position as the largest selling car with sale of 10,373 units, slightly over M800's
sales of 10,016 units.

Analysts felt that Alto had taken the top spot because of its price
reduction in September 2003 by Rs. 23,000 followed by the launch of the non-
AC Alto for Rs. 0.23 mn in the first week of April 2004. On reducing the gap
between its bread and butter model M800 and its compact car Alto, MUL said it
had "long term" plans for M800.
Commenting on Alto's pricing strategy, Jagdish AKhattar (Khattar),

managing director of MUL, said, "The new price positioning of the Alto would
cannibalize existing A1 segment product the M800 which is also considered an
old model. But, the cannibalization will remain within the Maruti family and
the bigger numbers will help Maruti depreciate Alto faster. Net M800 sales may
be less but we would be pushing more Alto and the more we sell the Alto the
faster it will depreciate."
Though industry analysts said this move would boost MUL's profits, they
also expressed their views that MUL's long-term plan might be to discontinue
M800 and replace the entry segment with Alto. However, Khattar clarified that
MUL's pricing strategy was not meant to replace M800 with Alto. He said,
"Now, we have two cars in entry-level. Maruti 800 is still a dream of Indians,
how can I replace it?"
Current and Future Market Strategies:
Design small cars suitable for the Indian conditions as a strategy to beat
the stiff competition with development capabilities and internal resources to
finance its expansion, thereby cushioning itself Companys plan to stay away
from the ultra low-cost segment.

Maruti Suzuki is looking to make India an exclusive base to manufacture small
cars
The Pricing Strategy :
Due to the fierce competition in the Indian passenger car industry, price
emerged as an important factor affecting the purchasing decisions of customers.
Since it had been in the industry for more than two decades, and as a market
leader, MUL adopted aggressive pricing strategies.
The company had products at various price points (Refer Exhibit IV for a
comprehensive list of MUL's products, their variants and prices). In the early
2000s, when the passenger car industry was witnessing stagnation, MUL
slashed the prices of its various models, to revive the industry.
KEY STRATEGIC INITIATIVES BY MARUTI
Turnaround Strategies Maruti Followed :
Maruti was the undisputed leader in the automobile utility-car segment

sector, controlling about 84% of the market till 1998. With increasing
competition from local players like Telco, Hindustan Motors, Mahindra &
Mahindra and foreign players like Daewoo, PAL, Toyota, Ford, Mitsubishi,
GM, the whole auto industry structure in India has changed in the last seven
years and resulted in the declining profits and market share for Maruti. At the
same time the Indian government permitted foreign car producers to invest in
the automobile sector and hold majority stakes.
OFFERING ONE STOP SHOP TO CUSTOMERS:
Maruti has successfully developed different revenue streams without

making huge investments in the form of MDS, N2N, Maruti Insurance and
Maruti Finance. These help them in making the customer experience hassle free
and helps building customer satisfaction.
Maruti Finance: In a market where more than 80% of cars are financed,
Maruti has strategically entered into this and has successfully created a revenue
stream for Maruti. This has been found to be a major driver in converting a
Maruti car sale in certain cases. Finance is one of the major decision drivers in
car purchase. Maruti has tied up with 8 finance companies to form a
consortium. This consortium comprises Citicorp Maruti, Maruti Countrywide,
ICICI Bank, HDFC Bank, Kotak Mahindra, Sundaram Finance, Bank of Punjab
and IndusInd Bank Ltd.( erstwhile-Ashok Leyland Finance).
Maruti Insurance :
Insurance being a major concern of car owners. Maruti has brought all
car insurance needs under one roof. Maruti has tied up with National Insurance
Company, Bajaj Allianz, New India Assurance and Royal Sundaram to bring
this service for its customers. From identifying the most suitable car coverage to
virtually hassle-free claim assistance it's your dealer who takes care of
everything. Maruti Insurance is a hassle-free way for customers to have their
cars repaired and claims processed at any Maruti dealer workshop in India.
TRUE VALUE :
Another significant development is MUL's entry into the used car market
in 2001, allowing customers to bring their vehicle to a 'Maruti True Value' outlet
and exchange it for a new car, by paying the difference. They are offered loyalty
discounts in return.This helps them retain the customer. With Maruti True Value
customer has a trusted name to entrust in a highly unorganized market and
where cheating is rampant and the biggest concern in biggest driver of sale is
trust.
REPOSITIONING OF MARUTI PRODUCTS :
Whenever a brand has grown old or its sales start dipping Maruti makes
some facelifts in the models. Other changes have been made from time to time
based on market responses or consumer feedbacks or the competitor moves.
Here are the certain changes observed in different models of Maruti.
CUSTOMER CENTRIC APPROACH:
Marutis customer centricity is very much exemplified by the five times

consecutive wins at J D Power CSI Awards. Focus on customer satisfaction is
what Maruti lives with. Maruti has successfully shed off the public- sector laid
back attitude image and has inculcated the customer-friendly approach in its
organization culture. The customer centric attitude is imbibed in its employees.
Maruti dealers and employees are answerable to even a single customer
complain. There are instances of cancellation of dealerships based on customer
feedback.
KEY SUCCESS FACTORS :
The Quality Advantage :
Maruti Suzuki owners experience fewer problems with their vehicles

than any other car manufacturer in India (J.D. Power IQS Study 2004). The Alto
was chosen No.1 in the premium compact car segment and the Esteem in the
entry level mid - size car segment across 9 parameters.
A Buying Experience Like No Other:
Maruti Suzuki has a sales network of 307 state-of -the-art showrooms

across 189 cities, with a workforce of over 6000 trained sales personnel to
guide MUL customers in finding the right car.
Quality Service Across 1036 Cities :
In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest
across all 7 parameters: least problems experienced with vehicle serviced,
highest service quality, best in-service experience, best service delivery, best
service advisor experience, most user-friendly service and best service initiation
experience.
One Stop Shop :
At Maruti Suzuki, customers will find all car related needs met under one
roof. Whether it is easy finance, insurance, fleet management services,
exchange- Maruti Suzuki is set to provide a single-window solution for all car
related needs.
The Low Cost Maintenance Advantage :
The acquisition cost is unfortunately not the only cost customers face
when buying a car. Although a car may be affordable to buy, it may not
necessarily be affordable to maintain, as some of its regularly used spare parts
may be priced quite steeply. Not so in the case of a Maruti Suzuki. It is in the
economy segment that the affordability of spares is most competitive, and it is
here where Maruti Suzuki shines.
Lowest Cost of Ownership :
The highest satisfaction ratings with regard to cost of ownership among

all models are all Maruti Suzuki vehicles: Zen, Wagon R, Esteem, Maruti 800,
Alto and Omni.
Technological Advantage :
It has introduced the superior 16 * 4 Hypertech engines across the entire

Maruti Suzuki range. This new technology harnesses the power of a brainy 16-
bit computer to a fuel-efficient 4-valve engine to create optimum engine
delivery. This means every Maruti Suzuki owner gets the ideal combination of
power and performance from his car.
SWOT ANALYSIS OF MARUTI UDYOG
STRENGTHS :
Established distribution and after-sales networks

Understanding of the Indian market and ability to liaison with the
government:-
Ability to design products with differentiating features:-
Brand Image
Experience and Know-how in technology:-
WEAKNESSES :
Lack of experience with the foreign market:-

Inexperience with foreign workforce

Heavy Import tariffs
OPPORTUNITY:
Increased purchasing power of Indian middleclass category

Govt. subsidies
Tax benefits
Foreign collaboration
THREATS :
Threats from Chinese manufacturers

Indian as well as foreign competitors
FINANCIAL MANAGEMENT
DEFINITION :
Financial management is concerned with the efficient use of an important

economic resource namely Capital Funds.
Objectives:
The main objective of a business is to maximize the owners economy

welfare. This objective can be achieved by:
Profit/EPS maximization

Wealth maximization.
Profit /EPS maximization: Profit /EPS earning is the main aim of every
economic activity. A business being an economic institution must earn profit to
cover its costs and provide funds for growth.
Profit / EPS is the test of economic efficiency.
Efficient allocation of fund.
Social welfare.
Internal resources for expansion.
Reduction in risk and uncertainty.
More competitive.
Desire for controls.
Basis of decision-making.
Wealth maximization: this is also known as value maximization or net

present worth maximization approach, it takes into consideration the time value
of money.
IMPORTANCE:
The following are the points to highlight the importance of finance.
Finance for business promotion.

Finance management for optimum use firms.
Use for co-operation in business activities.
Useful in decision making.
Determinant of business success.
Measurement of business.
Basis of planning, co-ordination and control.
Useful to shareholders and investors.
BALANCE SHEET
DEFINITION : A Balance sheet may be described as a statement of the

financial position of a concern at a given data. The financial position of a
concern is revealed by its assets on a given data and its liabilities on that date.
Excess of assets over liabilities represents Capital, such excess may be taken as
an indicator of the financial soundness of a concern.
Balance sheet Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Sources of funds
Owner's fund
Equity share capital 144.50 144.50 144.50 144.50 144.50
Share application
- - - - -
money
Preference share
- - - - -
capital
Reserves & surplus 8,270.90 6,709.40 5,308.10 4,234.30 3,446.70
Loan funds
Secured loans 0.10 63.50 71.70 307.60 311.90
Unsecured loans 900.10 567.30 - - -
Total 9,315.60 7,484.70 5,524.30 4,686.40 3,903.10
Uses of funds
Fixed assets
Gross block 7,285.30 6,146.80 4,954.60 5,053.10 4,566.70
Less : revaluation
- - - - -
reserve
Less : accumulated
3,988.80 3,487.10 3,259.40 3,179.40 2,735.90
depreciation
Net block 3,296.50 2,659.70 1,695.20 1,873.70 1,830.80
Capital work-in-
736.30 238.90 92.00 42.10 74.90
progress
Investments 5,180.70 3,409.20 2,051.20 1,516.60 1,677.30
Net current assets
Current assets, loans
3,190.50 3,956.00 3,870.70 3,097.40 2,144.40
& advances
Less : current
liabilities & 3,088.40 2,779.10 2,184.80 1,843.40 1,840.60
provisions
Total net current
102.10 1,176.90 1,685.90 1,254.00 303.80
assets
Miscellaneous
- - - - 16.30
expenses not written
Total 9,315.60 7,484.70 5,524.30 4,686.40 3,903.10
Notes:
Book value of
5,169.60 3,398.10 2,040.10 1,505.50 1,666.20
unquoted investments
Market value of
219.50 270.40 289.80 200.10 150.90
quoted investments
COMPANY ANALYSIS REPORT (Maruthi Udyog Limited)
Contingent liabilities 2,734.20 2,094.60 1,289.70 59
893.60 1,119.80
Number of equity
sharesoutstanding 2889.10 2889.10 2889.10 2889.10 2889.10
(Lacs)
Interpretation : The balance sheet amount has increased gradually from the
year 2004-2008 as 3,903.10 to 9,315.60 .
Analysation: This indication shows the company operations reach in wide in
facing the market efficiently.
PROFIT & LOSS ACCOUNT:
Definition: Net profit represents the excess of gross profit plus other revenue
incomes over sales expense including sales costs and other expenses. The debit
side of P&L a/c shows the expenses and the credit side the incomes. If the total
of the credit side is more, it will be net profit. And if the debit side happens to
be more, it would be net loss.
Mar '
P&L Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
08
18,066.
Operating income 14,806.40 12,197.90 11,046.30 9,449.50
80
Expenses
13,622.
Material consumed 11,063.70 9,223.70 8,508.50 7,033.50
00
Manufacturing
670.60 489.80 359.60 273.80 219.40
expenses
Personnel expenses 356.20 288.40 228.70 196.00 177.90
Selling expenses 560.20 499.90 356.00 369.90 666.20
Adminstrative
326.30 274.50 170.60 150.20 112.90
expenses
Expenses
-19.80 -14.30 -6.70 -22.40 -12.80
capitalised
15,515.
Cost of sales 12,602.00 10,331.90 9,476.00 8,197.10
50
2,551.3
Operating profit 2,204.40 1,866.00 1,570.30 1,252.40
0
Other recurring
456.10 361.10 268.10 218.90 198.90
income
3,007.4
Adjusted PBDIT 2,565.50 2,134.10 1,789.20 1,451.30
0
Financial expenses 59.60 37.60 20.40 36.00 44.90
Depreciation 568.20 271.40 285.40 456.80 494.90
Other write offs - - - 16.30 72.40
2,379.6
Adjusted PBT 2,256.50 1,828.30 1,280.10 839.10
0
Tax charges 763.30 705.30 560.90 446.50 227.70
Adjusted PAT 1,616.3 1,551.20 1,267.40 833.60 611.40

0
Non recurring
37.90 -23.00 -83.70 -31.40 -151.90
items
Other non cash
76.60 33.40 5.40 51.40 82.60
adjustme
1,730.8
Reported net profit 1,561.60 1,189.10 853.60 542.10
0
Earnigs before 7,368.1
5,947.10 4,631.20 3,611.00 2,878.00
appropriation 0
Equity dividend 144.50 130.00 101.10 57.80 43.30
Preference
- - - - -
dividend
Dividend tax 24.80 21.90 14.20 8.20 5.60
7,198.8
Retained earnings 5,795.20 4,515.90 3,545.00 2,829.10
0
Interpretation : The operating and non operating expenses and income are
incresing gradually from the year 2004-2008
Analysation : This trend shows that company,s productivity is increasing

yearly to extend its market operations.

RATIO ANALYSIS
Meaning of Ratio Analysis:
Ratio Analysis can be defined as the study and interpretation of

relationships between various financial variables, by investors or lenders. It is a
quantitative investment technique used for comparing a company's financial
performance to the market in general. A change in these ratios helps to bring
about a change in the way a company works. It helps to identify areas where the
management needs to change.
Steps in Ratio Analysis:
The firs task of the financial analyst is to select the information relevant
to the decision under consideration from the statements and calculates
appropriate ratios.
The second step is to compare the calculated ratio with the ratios of the
same firm relating to past or with the industry ratios. This step facilitates in
assessing success or failure of the firm.
The third step involves interpretation, drawing of inferences and report-
writing. Conclusions are drawn after comparison in the shape of report or
recommended course of action.
Importance:
Ratios are useful for the following reasons:
The ratios can be used by financial managers for future financial

planning. Ratios calculated for a number of years work as a guide for the
future.
Ratios are useful in co-ordination which is very needed in business. The

efficiency and weakness of an enterprise if communicated properly will
establish a better co-ordination among areas of appreciation and control.
Ratios are used for communication of weak and good points to the
concerned parties.
Ratios should be shown the better financial position of the firm. For
example, better solvency ratio speaks out good financial position.
The ratios are economic barometer useful to all mentioned above as they
can know the good and bad position of a company by making a
comparative study of financial statement.
Mar ' Mar ' Mar ' Mar ' Mar '
RATIOS
08 07 06 05 04
Per share ratios
Adjusted EPS (Rs) 55.94 53.69 43.87 28.85 21.16
Adjusted cash EPS (Rs) 75.61 63.09 53.75 45.23 40.80
Reported EPS (Rs) 59.91 54.07 41.16 29.55 18.76
Reported cash EPS (Rs) 79.57 63.46 51.04 45.92 38.40
Dividend per share 5.00 4.50 3.50 2.00 1.50
Operating profit per share (Rs) 88.31 76.30 64.59 54.35 43.35
Book value (excl rev res) per
291.28 237.23 188.73 151.56 123.74
share (Rs)
Book value (incl rev res) per
291.28 237.23 188.73 151.56 123.74
share (Rs.)
Net operating income per share
625.34 512.49 422.20 382.34 327.07
(Rs)
Free reserves per share (Rs) 286.28 231.89 183.18 144.13 116.91
Profitability ratios
Operating margin (%) 14.12 14.88 15.29 14.21 13.25
Gross profit margin (%) 10.97 13.05 12.95 10.08 8.01
Net profit margin (%) 9.34 10.29 9.53 7.57 5.61
Adjusted cash margin (%) 11.79 12.01 12.45 11.59 12.21
Adjusted return on net worth
19.20 22.63 23.24 19.03 17.10
(%)
Reported return on net worth
20.56 22.78 21.80 19.49 15.16
(%)
Return on long term funds (%) 27.35 30.74 33.47 28.12 22.71
Leverage ratios
Long term debt / Equity 0.05 0.08 0.01 0.06 0.08
Total debt/equity 0.10 0.09 0.01 0.07 0.08
Owners fund as % of total
90.33 91.57 98.70 93.43 92.00
source
Fixed assets turnover ratio 2.48 2.41 2.46 2.19 2.07
Liquidity ratios
Current ratio 1.03 1.42 1.77 1.68 1.17
Current ratio (inc. st loans) 0.91 1.40 1.77 1.67 1.15
Quick ratio 0.66 1.13 1.31 1.25 0.85
Inventory turnover ratio 22.93 28.76 18.78 22.97 30.43
Payout ratios
Dividend payout ratio (net
9.78 9.72 9.69 7.73 9.02
profit)
Dividend payout ratio (cash
7.36 8.28 7.81 4.97 4.40
profit)
Earning retention ratio 89.53 90.21 90.91 92.09 92.01
Cash earnings retention ratio 92.25 91.67 92.58 94.95 95.86
Coverage ratios
Adjusted cash flow time total
0.41 0.34 0.04 0.23 0.26
debt
Financial charges coverage ratio 50.46 68.23 104.61 49.70 32.32
Fin. charges cov.ratio (post tax) 39.57 49.76 73.28 37.85 25.71
Component ratios
Material cost component (%
77.25 73.36 77.25 78.30 74.47
earnings)
Selling cost Component 3.10 3.37 2.91 3.34 7.05
Exports as percent of total sales 4.10 3.90 4.78 8.89 9.96
Import comp. in raw mat.
10.84 12.62 18.75 19.69 20.40
consumed
Long term assets / total Assets 0.74 0.61 0.49 0.52 0.62
Bonus component in equity
- - - - -
capital (%)
PER SHARE RATIOS:
EPS is measured by dividing the net profits after taxes and preference dividend
by the total number of equity shares.
EPS = net profit after tax- preference dividend
Per share ratios 2008 2008 2007 2006 2005

Adjusted EPS (Rs) 55.94 53.69 43.87 28.85 21.16
Adjusted cash EPS (Rs) 75.61 63.09 53.75 45.23 40.80
Reported EPS (Rs) 59.91 54.07 41.16 29.55 18.76
Reported cash EPS (Rs) 79.57 63.46 51.04 45.92 38.40
Dividend per share 5.00 4.50 3.50 2.00 1.50
Operating profit per share (Rs) 88.31 76.30 64.59 54.35 43.35
Book value (excl rev res) per
291.28 237.23 188.73 151.56 123.74
share (Rs)
Book value (incl rev res) per
share (Rs.) 291.28 237.23 188.73 151.56 123.74
Net operating income per share
625.34 512.49 422.20 382.34 327.07
(Rs)
Free reserves per share (Rs)
286.28 231.89 183.18 144.13 116.91

Interpretation: Due To Incresing Profits And Market Sustainability The Per
Share Value Of Maruthi Suzuki Had Been In Incresing Trend From 2004-2009.
Analysis: As a result of that the per share value in the market is above 1100rs.
PROFITABILITY RATIOS:
Profitability is a ratio. Being a ratio profitability is a meaningful measure

and reveals the relation of different individuals items with sales of the concern.
Profitability of a concern can be known through the analysis of general and
overall profitability.
Gross profit ratio=Gross profit (100) /Net sales
Gross profit ratio= net sales-cost of goods sold (100) / Net sales
Profitability ratios 2008 2008 2007 2006 2005

Operating margin (%) 13.25
14.12 14.88 15.29 14.21
Gross profit margin (%) 8.01
10.97 13.05 12.95 10.08
Net profit margin (%) 9.34 9.53 7.57 5.61
10.29
Adjusted cash margin (%) 11.79 11.59 12.21
12.01 12.45
Adjusted return on net worth
17.10
(%) 19.20 22.63 23.24 19.03
Reported return on net worth
15.16
(%) 20.56 22.78 21.80 19.49
Return on long term funds (%) 22.71
27.35 30.74 33.47 28.12
Interpretation: The gross profit and net profit had increased initially from the
year 2004-2007 from 8.01-13.05,5.61-10.29 and decreased in the year 2008 as
10.95 and 9.34.
Analysis: Due to the implementation latest organisational aspects company

increased its expenses in the year 2008.
LEVERAGE RATIOS:

Leverage ratios can be computed from the balance sheet items to
determine the proportions of debt in total financing. Leverage ratios can also be
calculated from the income statement items by determining the exact to which
operating profits are sufficient to cover the fixed charges.
Debt equity ratio = Long term debit / Shareholders Equity
Leverage ratios 2008 2008 2007 2006 2005

Long term debt / Equity 0.05 0.08 0.01 0.06 0.08
Total debt/equity 0.10 0.09 0.01 0.07 0.08
Owners fund as % of total
92.00
source 90.33 91.57 98.70 93.43
Fixed assets turnover ratio 2.48 2.41 2.46 2.19 2.07
Interpretation: The Debt Equity Ratio Is Expected To Be 2:1 Ratio But It Is In

1:2 Ratio
Analysis: This Situation Creates Insecurity To Creditors.

LIQUIDITY RATIOS:
Liquidity means the ability of a concern to meet its current obligations as and
when these become due. Thus the liquidity ratios indicate the ability of a
concern to meet its short-term obligations.
Quick ratio= Quick assets / Current liabilities
Current ratio = Current assets / Current liabilities
Liquidity ratios 2008 2007 2006 2005 2004

Current ratio 1.03 1.42 1.77 1.68 1.17
Current ratio (inc. st loans) 0.91 1.40 1.77 1.67 1.15
Quick ratio 0.66 1.13 1.31 1.25 0.85
Inventory turnover ratio 22.93 28.76 18.78 22.97 30.43
Interpretation: The current ratio is in between 2:1 ratio, this is in increasing

trend from initial stage. From 2004-2007 and decreased in the year 2008 as
1.03.
Analysis: One way this trend shows the, balancing of current assets and
liabilities. This trend is continued even in quick ratio and liquid ratios.

PAYOUT RATIO:
This is the relationship between the returns belonging to the equity

shareholders and the dividend paid to them. Thus is calculated as:
Pay out ratio = dividend per share / Earning per share
Payout ratios 2008 2008 2007 2006 2005

Dividend payout ratio (net profit) 9.78 9.72 9.69 7.73 9.02
Dividend payout ratio (cash
7.36 8.28 7.81 4.97 4.40
profit)
Earning retention ratio 92.01
89.53 90.21 90.91 92.09
Cash earnings retention ratio 95.86
92.25 91.67 92.58 94.95

Interpretation: The Dividend Pay Out Ratio And Retention Ratio Is
Increasing From The Year 2004-2008.
Analysis: This Is Proseperous Trend To Share Holders And Company.
COVERAGE RATIOS
This ratio indicates the times-interest-earned. It is used to examine the

firms debt-servicing capacity. The interest coverage ratio is the sum of net
profit before interest and taxes dividend interest charges.
Coverage Ratio = sum of net profit before interest / Taxes dividend by interest
charges
COVERAGE RATIOS 2008 2007 2006 2005 2004

Adjusted cash flow time total debt 0.41 0.34 0.04 0.23 0.26
Financial charges coverage ratio 50.46 68.23 104.61 49.70 32.32
Fin. charges cov.ratio (post tax) 39.57 49.76 73.28 37.85 25.71

Interpretation: The Cash Balance Is Being Adjusted From 2004-2008
Between Creditors,
Debtors And Shareholders Dividend .
Analysis: This Is In Incresing Trend From 2004-2008.This Is Prosperous To
Company And Its Stake Holders
COMPONENT RATIOS:
This ratio ensures whether the capital employed has been effectively used
or not. This is also the test of managerial efficiency and business performance.
High total capital ratio is always required in the interest of the company.
Long term assets Turnover Ratio = Sales(net) / Capital employed
Component ratios 2008 2007 2006 2005 2004

Material cost component (%
earnings) 77.25 73.36 77.25 78.30 74.47
Selling cost Component 3.10 3.37 2.91 3.34 7.05
Exports as percent of total sales 4.10 3.90 4.78 8.89 9.96
Import comp. in raw mat. consumed
10.84 12.62 18.75 19.69 20.40
Long term assets / total Assets 0.74 0.61 0.49 0.52 0.62
Bonus component in equity capital
- - - - -
(%)
Interpretation: The Material Cost Component Ratio Is Increasing From

2004-2008.
Analysis: As the Productivity is increasing simultaneously but the selling cost

component
ratio decreased gradually from the year 2004-2008,which can decline the sales
percentage of company.
FINDINGS

This company analysis done by me, brought out many findings.
I would like to state some from them:
Maruthi Suzuki can be termed as an greater example for merging industries
(Govt. & foreign investments).
HRM:
Maruthi suzuki has finite recruiting and training procedures .
There are quality circles which can motivate employee and employer
relationship.
MARKETING MANAGEMENT:
This segment is the initial cause for the sustainability of maruthi as an

leader in the market of passenger cars.
Maruthi suzuki conducts r&d, in developing marketing strategies and

products , which are near to customer preferences and tastes.
FINANCIAL MANAGEMENT:
As Maruthi Suzuki is an company which consists of Indian governments

capital , it follows lawful and ethical practices impractically in
accounting its finance.
This company at most reaches the standard ratio in every ratio every year.

CONCLUSION
I have analyzed the attached Balance Sheet of Maruti Suzuki India

Limited (Formerly Maruti Udyog Limited), as of Five years comparison and
the related Profit and Loss Account and Cash Flow Statement for the year ended
on that dates Annexed thereto ! These financial statements are the
Responsibility of the company's management.
My pleasure is to express an opinion on these financial statements

based on analysis Those Standards An analysis includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An analysis also includes assessing the accounting principles
used and significant estimates, marketing Techniques, HRM strategies,
financial position of the Maruthi Udyog Limited.
The company analysis done by me on Maruthi Udyog Limited, sorted out

that the automobile industry in India is prosperous and growing with
innovating technology.
Cars in the market through different marketing strategies such as pricing

strategy, products development etc. Finally Maruthi Udyog Limited
has it financial trend in ascending order from previous four years.
Thus, Maruthi Udyog Limited, is counting its profits, and fulfilling the
Social responsibility, by making its tag line to be implemented i.e
Count on us

Maruthi Udyog Company Analysis Report

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COMPANY ANALYSIS REPORT

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 1

COMPANY ANALYSIS OF MARUTHI UDYOG

Submitted in partial fulfillment of the requirements for the award of the

MASTER OF BUSINESS ADMINISTRATION

Under the esteemed guidance of

Assistant Professor KOTTAM GROUP OF INSTITUTIONS Department of

SRI KOTTAM TULASI REDDY MEMORIAL ENGINEERING COLLEGE

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 2

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 3

SRI KOTTAM TULASI REDDY MEMORIAL

KONDAIR, ITIKYALA (MANDAL)

This is to certify that the company analysis report entitled on MARUTHI

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 4

SNO TITLE PAGE NO

(a) OBJECTIVES OF THE STUDY

(b) PROFILE OF THE COMPANY

4. ANALYSIS & INTERPRETATION OF FUNCTIONAL AREAS

(b) MARKETING MANAGEMENT

(C) FINANCIAL MANAGEMENT

5. FINDINGS AND CONCLUSION

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 5

The objectives of the study are:

To narrate the profile of the company

Overview of Maruti and Suzuki

Building understanding of the car market in India and various

Understand MULs product range and positioning in each segment

Understanding the basics in the automobile industry

Overview of each Maruti model and the MUL Advantage

Overview of the selling process and how to uncover needs of a

Role of financing as a sales tool and the various financing options

Ensuring personal effectiveness

To study the HRM of the company

To enhance my knowledge about Recruitment and Selection.

To convert my theoretical knowledge into practical knowledge.

To prepare myself as a H.R. person who can easily identify the

To enhance my knowledge about Training & Development

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 6

WHERE THERE IS A WILL THERE IS A WAY.

I am thankful to our guide, for her motivation, help and continuous

I express my deep sense of gratitude and thanks to B.PARIMALADEVI

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 7

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 8

I here by declare mat this project entitled A STUDY OF

Signature of the student.

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 9

Maruti Suzuki India Limited is a publicly listed automaker in India. It is a

Maruti Suzuki is one of India's leading automobile manufacturers and the

Maruti Udyog Limited (MUL) was established in February 1981, though

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 10

Maruti Suzuki was born as a government company, with Suzuki as a

Partner for the Joint venture

Pressure started mounting on Indira and Sanjay Gandhi to share the

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 11

Maruti is one of the companies in India which has unparalleled service

Service is a major revenue generator of the company. Most of the service

This service started as a benefit or value addition to customers and was

To promote its bottom line growth, Maruti launched Maruti Finance in

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 12

As part of its corporate social responsibility Maruti Udyog launched the

Maruti Exports Limited is the subsidiary of Maruti Udyog Limited with